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AMPAM Parks Mechanical, Inc. agreed to pay $13.75 million to resolve an ERISA class action lawsuit alleging company stock was sold to the Employee Stock Ownership Plan (ESOP) at an inflated price in 2019.
Participants and beneficiaries of the AMPAM Parks Mechanical, Inc. Employee Stock Ownership Plan (ESOP) who held vested shares on or after August 6, 2023, may be eligible for financial relief following a $13.75 million class action settlement. The agreement resolves a lengthy legal battle concerning the administration, valuation, and management of company stock within the retirement plan.
The class action lawsuit stems from allegations under the Employee Retirement Income Security Act (ERISA). Plaintiffs claimed that company founders and other defendants breached their fiduciary duties during a 2019 transaction that sold AMPAM stock to the ESOP for $247 million.
According to court filings, plan participants and employees were not involved in negotiating the purchase price, discovering the transaction only after it was completed. The lawsuit alleged that the stock was severely inflated at the time of purchase and that the plan’s value subsequently plummeted, resulting in significant financial harm to workers and beneficiaries relying on the retirement plan for their futures.
AMPAM Parks Mechanical has denied all allegations of wrongdoing and liability. However, to avoid the ongoing expense, delay, and uncertainty of trial proceedings, the parties agreed to establish a $13.75 million settlement fund.
You may be eligible to participate in the settlement if you meet specific plan criteria:
You are a participant or beneficiary in the AMPAM Parks Mechanical, Inc. ESOP.
You held vested shares of AMPAM stock on or after August 6, 2023.
Eligible class members do not need to file a standard claim form to receive their share of the settlement funds. Payouts will automatically be distributed on a pro rata basis from the net settlement fund, calculated by comparing the number of vested shares you held during the class period to the total shares held by all participants.
While automatic payouts will be issued to class members, participants have the option to dictate how their funds are handled for tax purposes.
If you prefer to avoid immediate tax withholding on your distribution, you can elect to have your settlement share transferred directly as a rollover into a qualified retirement account. Accepted rollover destinations include a traditional IRA, Roth IRA, 401(a), 401(k), 403(b), or eligible 457(b) governmental plan.
Class members who do not request a direct rollover will receive a check mailed directly to their address on file, which may be subject to standard tax withholding.
The Employee Retirement Income Security Act (ERISA) establishes strict federal standards of loyalty and prudence for individuals and entities managing employee benefit plans. Company leaders and plan trustees are legally required to act solely in the financial interest of plan participants and beneficiaries.
When corporate insiders use employee retirement plans to facilitate major stock transactions without independent, arm’s-length negotiations, participants can suffer severe losses. Class action lawsuits under ERISA serve as a vital mechanism to hold companies accountable, protect worker savings, and enforce corporate responsibility.
If you wish to submit a rollover form or review case details, note the following important dates established by the court:
Rollover Form Deadline: November 12, 2026 (Must be submitted online or postmarked by this date to direct your payout to a qualified retirement account).
Final Fairness Hearing: December 3, 2026 (The court will review the settlement terms to grant final approval).
To submit your rollover form online or download a PDF copy to mail to the settlement administrator (Atticus Administration, P.O. Box 64053, St. Paul, MN 55164), visit the official settlement website at www.ampamsettlement.com.
Corporate governance failures and retirement plan mismanagement can jeopardize your financial security. You don’t stand alone when fighting for the retirement benefits you earned through your hard work.
If you were affected by the AMPAM ESOP valuation issues, ensure you submit any required rollover documentation before the November 12, 2026 deadline.
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